Several banks in Kyrgyzstan stop using Russian money transfer systems — Daryo News

As TASS reported on June 13, several banks in Kyrgyzstan have temporarily suspended the operation of their money transfer systems used to send and receive funds between Russia and the republic.

RSK-Bank, a leading financial institution in Kyrgyzstan, announced the suspension of several money transfer systems due to ongoing technical work. The affected systems include Astrasend, Unistream, Contact, Zolotaya Korona and Sberbank-Online.

Similarly, Kompanion Bank has suspended the operation of certain transfer systems. The bank’s official statement states:

“For technical reasons, the following transfers are currently not possible: sending and receiving transfers in rubles in the Companion application, as well as sending and receiving transfers through the Unistream system.”

Mbank, another major player in the Kyrgyz financial market, has also introduced restrictions on transactions in rubles. The bank cited the volatility of the exchange rate and possible sharp fluctuations in the foreign exchange market as reasons for the temporary restrictions. Despite these restrictions, Mbank assured customers that all funds in ruble accounts are safe.

In addition, five more Kyrgyzstan banks have announced restrictions on transactions converting ruble accounts into dollar accounts, a move that comes in response to ongoing market instability.

The disruption of money transfer services follows a general trend of financial caution in Kyrgyzstan. In November 2023, the majority of Kyrgyz banks stopped servicing Russian Mir payment cards due to the threat of US sanctions. Currently, several of the 22 commercial banks operating in Kyrgyzstan had already stopped working with Mir cards before the recent developments.

On June 12, the Moscow Stock Exchange (MOEX.MM) announced an immediate halt to trading in US dollars and euros due to US sanctions against Russia.